Multiple Choice
Which of the following is NOT true regarding the production possibilities frontier (PPF) ?
A) The PPF shows the combination of goods that a country can produce given its current productivity and supply of resources.
B) The PPF illustrates the trade-offs that exist in the production of goods.
C) The PPF shows us that gains from trade are maximized when countries produce goods for which they have an absolute advantage in production.
D) The PPF illustrates the fundamental ideas of scarcity and opportunity cost.
Correct Answer:

Verified
Correct Answer:
Verified
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